60.1K

Verified Solution

Link Copied!

The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2024: Interest expense Interest payable Rent expense Prepaid rent Interest receivable Interest revenue Additional information: Debit 7,200 35,000 1. Interest rate 2. Month of rent payment 3. Principal 500 Credit 7,200 % 35,000 1. The company borrowed $120,000 on March 31, 2024. Principal and interest are due on March 31, 2025. This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $60,000. The rent is paid in advance. 3. On October 31, 2024, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2024 rent payment was made at the beginning of which month? 3. How much did Eldorado lend its customer on October 31? Note: Do not round your intermediate calculation. 500

The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31,2024: 1. The company borrowed $120,000 on March 31, 2024. Principal and interest are due on March 31,2025 . This note is the company's only interest-bearing debt 2. Rent for the year on the company's office space is $60,000. The rent is paid in advance 3 On October 31,2024 , Eldorado lent money to a customer. The customer signed a note with principal and interest ot 6% due in one year: Required: 1. What is the interest rate on the company's note payable? 2. The 2024 rent payment was made at the beginning of which month? 3. How much did Eldorado lend its customer on October 31 ? Note: Do not round your intermediate calculation

Answer & Explanation Solved by verified expert

See Answer